A settlement is an agreement reached between two or more parties to resolve a dispute or conflict. This often happens in legal cases, where both sides negotiate terms to avoid a lengthy trial. For example, in a lawsuit, the parties might agree on a payment or other terms that satisfy both sides, allowing them to move on without further legal action. In addition to legal contexts, the term "settlement" can also refer to a community or group of people living in a specific area. This could be a small village or a larger town where individuals and families establish homes and build a community together.